Meta plans to cut back on its metaverse team investments, redirecting funds toward VR headset business

Odaily Planet Daily reports that, according to The New York Times, three informed employees stated that Meta Platforms(META.O) is considering layoffs for a branch within its Reality Labs division that is engaged in “metaverse” business, potentially starting as early as next month, affecting 10% to 30% of the team. The team is primarily responsible for VR headsets and VR-based social networks. Reality Labs consists of the Metaverse division and the Wearables division. Sources say that management expects to redirect the savings from layoffs into the AR glasses project. Meta partnered with Ray-Ban in 2021 to launch AR glasses, which have already exceeded the company’s internal sales targets. Insiders say Meta is re-evaluating its investments related to the metaverse, and senior executives within the metaverse division are considering significant cuts to VR-related positions.